Asia-Pacific Activated Carbon Market Outlook to 2030

Asia-Pacific Activated Carbon Market Overview

• The Asia-Pacific Activated Carbon Market was valued at USD 3.45 billion in 2023. The market growth is driven primarily by the increasing demand for water purification, air filtration, and industrial processing applications. As countries in the region, particularly China and India, urbanize rapidly and industrial activities increase, the need for efficient pollutant removal methods has surged, bolstering the activated carbon market.

• The market is dominated by several key players, including Osaka Gas Chemicals Co., Ltd. (Japan), Haycarb PLC (Sri Lanka), Kuraray Co., Ltd. (Japan), Jacobi Carbons (Sweden), and Boyce Carbon (India). These companies have established a strong presence in the region through continuous product innovation, strategic partnerships, and expansion initiatives.
• The opening of Haycarb PLC's new manufacturing plant in Sri Lanka in 2023, this expansion aims to increase the company's production capacity, enabling it to meet the growing demand for activated carbon across Asia. The facility focuses on producing high-grade activated carbon for water purification and air filtration applications, responding to the region's rising environmental concerns.
• China dominates the market, due to the country's large industrial base, stringent environmental regulations, and significant investments in water and air purification infrastructure. Beijing, as the capital city, has been at the forefront of implementing these measures, leading to increased demand for activated carbon in the region.

Asia-Pacific Activated Carbon Market Segmentation

The market is segmented into various factors like product, end-user, and region.

By Product: The market is segmented by product into powdered activated carbon, granular activated carbon, and extruded activated carbon. In 2023, powdered activated carbon held the dominant market share due to its widespread use in water treatment applications. The high surface area and adsorption capacity, making it ideal for removing contaminants from water.

By End-user: The market is segmented by end-user into water treatment, air purification, and food & beverage processing. In 2023, the water treatment segment dominated the market by the rising concerns over water pollution and the need for effective purification systems, particularly in developing countries like India and Indonesia.

By Region: The market is segmented by region into China, South Korea, Japan, India, Australia, and Rest of APAC. In 2023, Chinas extensive use of activated carbon in key industries such as water treatment, chemical manufacturing, and automotive emissions control contributes significantly to its leading position in the market.

Asia-Pacific Activated Carbon Market Competitive Landscape

• Haycarb PLC: In 2024, Haycarb PLC introduced a new line of activated carbon products designed specifically for air purification applications. These products feature enhanced adsorption capabilities, making them highly effective in removing volatile organic compounds (VOCs) from indoor air. The companys focus on innovation has enabled it to capture major market share of the air purification segment, positioning it as a leader in the Indonesian market.
• Calgon Carbon: Calgon Carbon, a subsidiary of Kuraray, has expanded its virgin granular activated carbon production in the U.S. to over 200MM pounds annually. The company's FILTRASORB activated carbon can achieve non-detect levels of PFOA, PFOS, PFHxS, PFNA and GenX in drinking water, meeting new EPA guidelines.

Asia-Pacific Activated Carbon Market Analysis

Market Growth Drivers

• Increased Demand for Clean Water Solutions: In 2024, the Asia-Pacific region saw rising demand for clean water solutions due to widespread water contamination. Over 600 million people lack safe drinking water, prompting increased use of activated carbon in water treatment. Industrial pollution, particularly from textiles and pharmaceuticals, has driven this adoption to meet regulatory and health standards.
• Expansion of the Pharmaceutical Industry: The pharmaceutical industry in the Asia-Pacific region has expanded, with an estimated growth. Activated carbon is increasingly used in the pharmaceutical sector for purification processes and to remove impurities in drug manufacturing. The rise in pharmaceutical production, particularly in countries like India and South Korea, is driving the need for high-quality activated carbon, making it a crucial component in the production process.
• Growing Air Filtration Requirements: As air quality issues become more pronounced in urban centers across Asia-Pacific, there has been a marked increase in the adoption of activated carbon for air filtration systems. In 2024, it was reported that over 1.5 million air purification units equipped with activated carbon were sold across major cities in China and India.

Market Challenges

• Intense Competition from Alternative Technologies: The industry is also challenged by the emergence of alternative technologies for air and water purification. In 2024, the adoption of advanced filtration methods, such as UV and ozone treatment systems, saw a substantial rise, deployed across industrial sectors. These alternatives, which are often more cost-effective and efficient in certain applications, pose a competitive threat to the traditional activated carbon market, potentially limiting its growth in certain segments.
• Logistical Challenges in Distribution: The logistical complexities of distributing activated carbon across the vast and varied terrain of the Asia-Pacific region present another challenge. In 2024, transportation costs for activated carbon within the region increased due to rising fuel prices and supply chain inefficiencies. These challenges are particularly acute in remote or less developed areas, where infrastructure limitations can impede the timely delivery of products, affecting market penetration and customer satisfaction.

Government Initiatives

• Indias Water Quality Improvement Projects: The Indian government launched several water quality improvement projects in 2024, with a total budget of 12.86 billion USD. These projects are focused on enhancing water treatment infrastructure across the country, particularly in rural and semi-urban areas. Activated carbon plays a crucial role in these projects, being used extensively in filtration systems to meet the stringent water quality standards set by the government. This initiative has led to a significant increase in the domestic demand for activated carbon.
• Australias Air Quality Management Plan: Australia, under its 2024 Air Quality Management Plan, has introduced stricter regulations on indoor air quality, particularly in commercial buildings and public spaces. The plan, use of activated carbon filters in HVAC systems to reduce harmful airborne pollutants. This initiative has led to a surge in demand for activated carbon in the countrys construction and real estate sectors, as building owners and developers rush to comply with the new regulations.

Asia-Pacific Activated Carbon Market Future Outlook

The future trends in the Asia-Pacific activated carbon industry include increased adoption in renewable energy storage, expanded applications in medical treatments, a shift towards eco-friendly production processes, and greater use in industrial emission control systems due to stricter environmental regulations.

Market Future Trends

• Development of Eco-Friendly Activated Carbon Production: By 2028, the Asia-Pacific region will see a major shift toward eco-friendly activated carbon production. With major of output expected from low-emission facilities, companies will invest heavily in sustainable technologies to reduce the environmental impact of production, aligning with global sustainability goals.
• Increased Integration in Industrial Emission Control: The use of activated carbon in industrial emission control systems will rise by 2028, particularly in China and India. With over 80% of systems incorporating activated carbon, this growth is driven by stricter environmental regulations and heightened awareness of the environmental and health impacts of industrial emissions.